Abstract: A study of the obtainable watermark data rate for information hiding algorithms is presented in this paper. As the perceptual entropy for wideband monophonic audio signals is in the range of four to five bits per sample, a significant amount of additional information can be inserted into signal without causing any perceptual distortion. Experimental results showed that transform domain watermark embedding outperforms considerably watermark embedding in time domain and that signal decompositions with a high gain of transform coding, like the wavelet transform, are the most suitable for high data rate information hiding. Keywords?Digital watermarking, information hiding, audio watermarking, watermark data rate.